President's Blog - Apps - Here to Stay
There are Ultra High Net Worth investors with a net worth between $5 million and $25 million who want their advisor to offer all of their services via an app.
That information comes from Spectrem’s study on the ever-changing topics of social media and mobile technology, which asked investors how they use their smartphones to access information from their advisor, whether they prefer to use their smartphone or tablet, and whether they prefer to access information via websites or apps.
According to the Spectrem study Using Social Media and Mobile Technology in Financial Decisions, the most up-to-date research on modern communication among wealthy investors, 52 percent of UHNW investors prefer websites and 16 percent prefer apps. Both segments want as much information as the advisor can provide via those platforms.
Apps have the advantage of being instantaneously accessed. One tap on the icon for that app brings you to the site, versus calling up a web browser, typing in the website address, and waiting for its home page to appear. Also, websites require a Wi-Fi feed to access.
Website users complain they cannot get all of the information they want from an app (which is true). App users complain that websites are more difficult to navigate than apps, and simply don’t want to have to go through the steps to access the site.
Today’s environment for communication is complicated. Thanks to social media, financial providers and advisors are advised to post to Facebook and Twitter and YouTube whenever possible to stay connected with modern investors and create new relationships. They are advised – through Spectrem research – to provide as much account information and research articles they can on their websites.
Now they are being advised to create, monitor and update their apps.
There might be someone in your organization who says there needs to be a stopping point in the availability of services through electronic media, but that is simply the incorrect way of looking at modern communicating. Smartphone usage is increasing daily, and investors are using smartphones for financial purposes more every day.
One of those purposes is to access information from their advisor’s website. In fact, one of the overwhelming points garnered from the Spectrem study is that investors want to get as much of their investment and portfolio information as possible from their advisor website, rather than going to other information sites like CNBC or Fox Business.
An app is an extension of the advisor’s website, and is the preferred method of accessing that information for the aforementioned 16 percent of UHNW investors.
Investors who want to stay abreast of financial news and maintain a clear and consistent relationship with their investments will expect their financial advisor’s website and app to provide current data. Apps provide an easy access to that information, and today’s modern investor likes easy. Investors today are more likely than ever before to make advisor decisions based on social media and mobile technology availability.
Ignore apps at your own peril.